An investment mortgage in the Netherlands can be used to buy property for rent or a holiday home. It is worth noting that the risk and return on investment levels of rental properties can vary.

What are the differences between buy-to-let and holiday-let? 

• Buy-to-let properties typically refer to residential properties rented out long-term, with tenants signing leases for a year or longer.

• Contrariwise, holiday-let properties are typically furnished and rented out short-term, often for a few nights or weeks.

• The rental income from a holiday-let property can be higher than a buy-to-let property. However, the rental income from a holiday can be seasonal and may need to be consistent throughout the year.

• To attract bookings, holiday-let properties require more management, such as cleaning, maintenance, and marketing. Buy-to-let properties require less control as tenants usually take care of the day-to-day maintenance of the property

Mortgage for holiday homes

• This type of mortgage is available for both new and existing recreational dwellings.

• Transfer tax for holiday properties is 10.4 %.

• You can finance 75% of the market value of your holiday home.

• You can choose between an annuity or a linear mortgage.

• Depending on your situation, you can also opt for a fixed or variable interest rate.

• When determining mortgage eligibility, rental income is typically not considered.

Requirements for holiday mortgage in the Netherlands

• The holiday homes in the Netherlands are typically situated on privately owned land and feature essential amenities such as water and electricity connections.

• These homes are constructed using durable stone materials and are designed to be permanently fixed in place.

• Additionally, they must be habitable throughout the year, suitable for all seasons.

• While they can be used for renting purposes, they are primarily intended for personal use.

Is it possible to live in my holiday home?

Can I temporarily rent out my holiday home?

• Rent out a home for up to 60 days per year in some municipalities.

• Never rent out the house for more than four weeks in one go.

• Get home insurance that covers temporary rentals.

• Comply with the regulations set by the municipality.

• Obtain permission from the Owners' Association (if applicable).

Buy-to-let mortgages 

• Typically, investors can obtain a mortgage up to 75% of the loan-to-value (LTV) ratio.

• You'll need to provide 25% of the property's price through savings or equity in an existing property.

• Buy-to-let properties are subject to a transfer tax of 10.4%.

• To qualify for a mortgage, you must be registered, live, and work in the Netherlands.

• You must comply with the requirements set forth by your municipality, including the Purchase Protection Act.

• Buy-to-let mortgages typically carry an additional interest rate of 0.5% over standard mortgage rates.

Is it possible to live in my buy-to-let property?

Requirements for buy-to-let properties

• An investment property should meet the requirements for rent.

• Each municipality has a point system based on the property size, WOZ value, energy efficiency, luxury fittings, and additional points to the property.

• You can get a preliminary point counting via the huurcommissie website.

• Properties with a value over 149 points are unregulated. Therefore there are no restrictions on who can live on the property and how much rent they can be charged.